If you work, you will have to pay tax (if you earn enough). If
you are employed, your employer will deduct your tax from your
If you have your own business, you will have been registered
in "Hacienda" (Tax office) when your business was started.
Companies (Inc., Limited, SL, SA, etc.) will have a tax number
that is c called CIF. If you are freelance they will use your
NIE number as your tax number, but it is then called NIF, and
it will be used in everything that refers to your taxes.
Everyone who works or who has resident permit, will be
required to file an income tax return between May 1 and June
Wealth Tax is lower in Spain than in many other countries, and
calculated from the net value. On a home, it will be the
appraised value minus any loan on the property, and the amount
will be from 0.2 to 2.5 %, depending on the assessed value.
Even if you only have a vacation home in Spain, you will need
to pay wealth tax of your property, and you need to send in a
Spanish income tax return. This can be delivered and paid
anytime the following year, and you have to do this even if
you have paid wealth tax in your hour home country. However,
you should be able to deduct this amount from your tax return
in your home country.
Information about wealth tax for residents is included in the
annual tax return (renta) that has to be delivered between May
1 and June 30. If you are a resident you pay wealth tax on all
of your property and assets, including what you own in other
countries, but the amount you can deduct is quite high, so you
will need to have a very high fortune in order to be affected.
Property tax - see Property